Municipal Bond Forum
Proposed Exemption Limit On Muni Bonds
Q
In your article, “The One Issue Politicians Aren’t Fighting About,” you talk about attempts to limit the tax exemption on muni bond interest. What is the limit predicated on?
A
James A. Klotz responds:
The proposal would limit the tax benefit on municipal bonds to 28% for individuals who earn more than $200,000 a year and couples earning more than $250,000 per year.
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